TORONTO, Feb. 19 /CNW/ -
- The deadline for making a contribution to a Registered Retirement
Savings Plan (RRSP) that can be deducted on your 2007 tax return is
February 29, 2008.
- Maximum RRSP contribution limits for 2007 is $19,000. The maximum for
2008 is $20,000.
- New RRSP contribution room opened on January 1, 2008 based on your
2007 earned income. Although you will not be able to claim a
deduction until you file your 2008 tax return, any contribution you
make will be earning tax-free income in the meantime.
- Contributions up to $2,000 in excess of RRSP limits can be made
without being subject to a penalty tax.
- A spouse in a higher tax bracket may consider income-splitting
opportunities by contributing to a spousal RRSP.
- RRSP contributions can be carried forward if claimants foresee being
in a higher tax bracket in future years. This will help maximize the
- The age limit for holding RRSPs has changed from 69 to 71. If you
turn 71 in 2008, you must convert your RRSPs into a form of
retirement income before the end of this year or be taxed on the Fair
Market Value of the plan. Be sure to discuss your options with a tax
- With few exceptions, RRSPs withdrawals are taxed. However, there are
federal programs allowing contributors to borrow from their RRSP for
putting a down payment on a first house or financing education. The
special rules and restrictions should be discussed with a tax
A local H&R Block tax professional can talk about other tips for RRSP
About H&R Block Canada
H&R Block Canada prepares nearly two million tax returns annually, making
it Canada's leading tax preparation firm. Headquartered in Calgary, Alberta,
the company serves Canadian taxpayers in more than 1,000 offices across the
country. H&R Block Canada Inc. is a subsidiary of H&R Block, Inc., a
diversified company with subsidiaries providing a wide range of financial
products and services. Additional information about H&R Block Canada is
available at 1-800-HRBLOCK or visit www.hrblock.ca for more tax tips.
For further information:
For further information: Tina Quelch, Calador Communications, (416)